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An evaluation of export revenues as determinants of economic growth in the South Pacific island nations

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Author Info

  • Sospeter N. Onchoke

    (Policy Research Consortium, Nairobi, Kenya)

  • Francis In

    (School of Economics, Deakin University, Geelong 3217 Victoria, Australia)

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    Abstract

    The consistently held contention that export performance determines economic growth, particularly in the LDCs, is analysed empirically for the South Pacific island nations (SPINs). Given that there is reasonable evidence on export revenue|GDP linkages, this study is focused on the short-run relationships between exports and GDP, using the most consistent data set available for selected SPINs. Granger causality based on VAR models, forecast error decomposition analysis (FEDA) and impulse response analysis (IRA) were employed for the short-run investigations. Whilst Granger causality gave mixed results, those of FEDA and IRA were quite consistent. Copyright © 1998 John Wiley & Sons, Ltd.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

    Volume (Year): 10 (1998)
    Issue (Month): 7 ()
    Pages: 857-869

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    Handle: RePEc:wly:jintdv:v:10:y:1998:i:7:p:857-869

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    Web page: http://www3.interscience.wiley.com/journal/5102/home

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    1. Chow, Peter C. Y., 1987. "Causality between export growth and industrial development : Empirial evidence from the NICs," Journal of Development Economics, Elsevier, vol. 26(1), pages 55-63, June.
    2. Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
    3. Hsiao, Cheng, 1979. "Causality tests in econometrics," Journal of Economic Dynamics and Control, Elsevier, vol. 1(4), pages 321-346, November.
    4. Ford, Stephen A., 1986. "A Beginner'S Guide To Vector Autoregression," Staff Papers 13527, University of Minnesota, Department of Applied Economics.
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    Cited by:
    1. Spruk, Rok, 2011. "Productivity and income convergence in transition: theory and evidence from Central Europe," MPRA Paper 33389, University Library of Munich, Germany.
    2. Davide Fiaschi & Andrea Mario Lavezzi, 2011. "Growth Volatility and the Structure of the Economy," Discussion Papers 2011/117, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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